Excise guidelines for the alcohol industry

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

2 LICENSING: Applications

2.1 PURPOSE

This Chapter deals with:

•

why there is a licensing regime

•

what a licence is

•

different licence types

•

how long a licence is valid for

•

whether licences are transferable

•

disclosure of your licensing information

•

how to register for excise

•

how to apply for a licence

•

how to change your licence details, and

•

penalties that can apply to offences in relation to licences.

2.2 INTRODUCTION

2.2.1 WHY THERE IS A LICENSING REGIME

The excise duty attached to ' excisable alcohol products ' forms a significant component of the overall value of the goods. A licensing regime helps the CEO maintain control of excisable goods and ensure the correct amount of duty is paid.

2.2.2 LICENSING RULES

A licence enables you to manufacture or store excisable goods, or both. If you undertake these activities without a licence, or contravene your licence conditions, you are committing an offence and may be prosecuted.

A licence is issued to a specific entity and specifies the premises ^[12] where the activities may be undertaken. A licence may specify one or more premises and an entity may have multiple licences.

Licences can be issued to:

•

individuals

•

partnerships and companies in their own right, and

•

individuals and companies in their capacity as trustees.

There may be different licensing processes depending on the type of entity applying for the licence.

2.3 POLICY AND PRACTICE

2.3.1 DIFFERENT LICENCE TYPES

There are 2 licence types for excisable alcohol products:

•

manufacturer

•

storage.

A licence may specify one or more premises at which excisable goods may be manufactured or stored. A licence that only specifies one premises (single premises licence) also includes details of the kinds of goods allowed to be manufactured or stored and any conditions to which the licence is subject.

A licence issued to an entity in respect of multiple premises (entity level licence) will contain a schedule showing the address for each premises covered, goods allowed to be manufactured or stored in those premises and any conditions to which the licence is subject.

Broadly, if you have a manufacturer licence covering one premises and a separate storage licence covering another premises and you want to consolidate your licences, you will need an entity level manufacturer licence. This is because by limitation of the definition of the 2 licence types, an entity cannot undertake manufacture of excisable goods at premises that are not licensed for that manufacture.

If you have an entity level licence, you may also receive a general movement permission, which will allow you to move ' underbond ' goods of a kind specified in your permission from any premises covered by your licence to any other premises licensed to manufacture or store goods of that kind.

Manufacturer licence

You need a manufacturer licence to manufacture excisable goods. ^[13] The goods can only be manufactured at premises specified in your licence. ^[14]

'Manufacture' is defined in the Excise Act to include all processes in the manufacture of excisable goods. ^[15]

Guidance on how the courts would interpret the term 'manufacture' may be found in court decisions examining the meaning of 'manufacture' in the context of other legislation.

In summary, the courts have given the word 'manufacture' the meaning of either producing a thing which is different from its inputs, or bringing a new article into existence by skill or knowledge. ^[16]

Processes that involved the application of knowledge, the application of skill, experience, services or labour which results in the conversion of materials into a saleable commodity may fall within the definition of 'manufacture'. The commodity must be different from the inputs which went into making it.

In an excise context, the conversion may result in a change in physical or chemical properties (or both) of goods, for example, in colour, shape, density, viscosity, distillation temperature, composition, texture, aroma or taste.

The Excise Act is directed towards controlling commercial operations. It would not be consistent with those controls for us to grant a licence for the production of excisable goods for personal use. In particular, commercial operations would not include home distillation of spirit for personal use. ^[17]

We do not grant licences to manufacture excisable goods for non-commercial use. While it is permitted to make beer or wine (or other fermented beverages) for personal use, it is illegal to use a still of any size to distil spirits for personal or any other use without the appropriate licence. ^[18]

The Excise Act definition of manufacture includes the manufacture of beer, for non-commercial purposes, using commercial facilities or equipment. This is what occurs at brew on premises shops (BOPS).

BOPS are premises which provide commercial brewing facilities for customers to make beer for their own consumption. Only the operator or proprietor of the BOPS is required to hold an excise licence, even though the customers may be seen to be carrying out the manufacturing activity.

For more information regarding BOPS, see Chapter 10 Beer.

Where beer undergoes a repackaging process, it is considered manufacture for excise purposes and is required to be done in accordance with a manufacturer licence. A repackaging process is considered as follows:

•

beer is entered for home consumption in an individual container that is

–

greater than 48 litres, or

–

at least 8 litres but not exceeding 48 litres, and is designed to connect to a pressurised gas delivery system (or other system prescribed by the regulations), and

•

subsequently repackaged into an individual sealed container that is

–

less than 8 litres, or

–

at least 8 litres but not exceeding 48 litres and is not designed to connect to a pressurised gas delivery system (or other system prescribed by the regulations).

However, an exemption to this applies to the first 10,000 litres of beer that is repackaged at particular premises in a financial year where:

•

the beer is repackaged into exempt beer containers for the purposes of retail sale, and

•

the retail sale occurs immediately after the repackaging of the beer.

An exempt beer container is a sealed individual container, of no more than 2 litres, that is not pressurised.

For businesses that repackage beer at more than one premises, each premises is subject to its own 10,000 litre threshold. ^[19]

---

Example 2A

Beer manufacturer XYZ sells duty-paid beer in 50 litre kegs to restaurant ABC, and restaurant ABC repackages the beer into pressurised containers for resale within the restaurant. ABC is therefore a manufacturer of beer and will require a licence as the containers are not 'exempt beer containers'.

Example 2B – repackaging that is not manufacture

The operator of a hotel purchases 50 litre kegs of beer on which excise duty has been paid. Customers are able to bring in empty containers (for example, growlers and squealers) to be refilled over the bar, from the duty-paid kegs. Provided the containers have a capacity of no more than 2 litres, the first 10,000 litres of beer at the hotel premises during the financial year will not be taken to be the manufacture of beer. The operator of the hotel will not require an excise manufacturer licence unless and until it repackages more than 10,000 litres of beer in this manner or otherwise undertakes excise manufacture.

---

We consider that these common activities in relation to alcohol are manufacture for excise purposes:

•

fermentation (except for products covered by the wine equalisation tax (WET))

•

distillation

•

the addition of flavours or colours or both (including in-line mixing as part of packaging into bottles, cans or kegs)

•

reduction (adding water)

•

blending*

•

denaturing spirits

•

maturation of spirits in wood, and

•

repackaging of duty-paid beer from bulk containers (subject to the 10,000 litre exemption discussed in Section 2.3.1 ).

*Specifically in relation to blending spirits, section 77FM of the Excise Act provides that spirit blending to produce spirit constitutes the manufacture of that spirit for the purposes of the Excise Act. A consequence of this section is that where imported high strength spirit is blended in Australia with other high-strength spirit the resulting spirit is excisable.

However, section 77FM also provides for the Commissioner to specify circumstances where blending of spirits does not constitute manufacture. Excise (Spirit blending exemptions) Determination 2020 (No.1) specifies that the following circumstances are not considered to be manufacture:

•

the incidental blending that occurs where spirit, whether previously entered for home consumption or not, is placed in a vessel or container with remnants of a spirit or another substance

•

the blending of spirit that has been previously entered for home consumption under subitems 3.5, 3.6 and 3.7 of the Schedule with like spirit also previously entered for home consumption under the same tariff subitem, or another substance, by a person who has approval under the Excise Act to use that spirit and the blending occurs as an incident of employing the spirit in a manner commensurate with the tariff subitem

•

the blending of denatured spirit that has been previously entered for home consumption under subitem 3.8 of the Schedule with denatured spirit also previously entered for home consumption under the same tariff subitem or another substance (other than goods classified to items 1, 2 or 3 of the Schedule) except in order to produce a beverage

•

the blending of spirit that has been previously entered for home consumption with like spirit also previously entered for home consumption where these spirits attract the same rate of excise duty.

Excise manufacturer licences specify the manufacturing activity or activities permitted such as:

•

brewing

•

brew on premises shops (BOPS) operations

•

distillation

•

maturation

•

denaturing of spirit

•

manufacturing other excisable beverages, or

•

any combination of these.

You cannot commence manufacture of excisable alcohol products without a licence. This means that you cannot test your manufacturing equipment or produce samples to market to potential buyers if you do not hold a licence.

Imported alcohol products (other than alcohol which is subject to wine equalisation tax) are subject to customs duty at a rate that is equivalent to the duty on excisable alcohol products (except for an additional ad valorem duty that is payable on certain spirits). If you intend to use imported alcohol products in the manufacture of excisable products ^[20] you will not need to pay the customs duty (except any ad valorem duty that is payable) if you follow the provisions in the Customs Act. ^[21]

This Guide does not address the requirements of the Department of Home Affairs, however, in general, the provisions provide that if your premises are covered by an excise manufacturer licence and also by a Customs warehouse licence you can enter the imported alcohol products for warehousing and then use the imported alcohol products to manufacture excisable goods. The liability to pay the customs duty on the imported alcohol products is extinguished (except for any ad valorem duty that is payable) upon the manufacture of excisable goods. You will then be liable to pay excise duty on the excisable alcohol products.

You can only manufacture goods at the premises covered by your licence. ^[22] We may also give you written directions in regard to what parts of your factory any manufacturing process is to be carried on and where inputs used in manufacture, and excisable alcohol products, respectively, are to be kept. ^[23]

Storage licence

If you have a manufacturer licence and wish to store your excisable alcohol products 'underbond' at a place that is not covered by your licence, you will require a separate storage licence for that premises or you will need to vary your existing licence to cover an additional premises.

If you are in the business of wholesaling and distribution, you may wish to store underbond excisable alcohol products, whether owned by you or someone else. In either case, you would require a storage licence.

Even if you are not the owner of the excisable alcohol products, you are still responsible for the security of the goods and may be liable to pay an amount equivalent to the duty if the excisable goods, which are subject to the Commissioner's control, are not kept safely or are not satisfactorily accounted for. ^[24]

A storage licence will specify the type of excisable alcohol products and all the premises covered by the licence. It will also specify the activities, if any, you can undertake in relation to those goods ^[25] , and whose excisable goods you can store, for example:

•

goods you own

•

goods owned by certain people

•

storage only of underbond packaged product

•

storage only of bulk product (apart from storage in wood for maturation purposes)

•

packaging (in bottles, cans, kegs) that does not involve in-line mixing ^[26]

•

repacking (outer cartons only), or

•

filtering (except when filtering is combined with other processes and becomes part of an excise manufacturing process).

2.3.2 RESPONSIBILITIES OF A LICENCE HOLDER

You are responsible for the safe custody of all excisable alcohol products held on your premises and for the observance of the Excise Act at premises covered by your licence. ^[27]

You may be responsible for paying an amount equal to the duty that would have been payable on any stolen, missing or unaccounted for underbond excisable alcohol products. ^[28]

We may take stock of the excisable alcohol products you have manufactured and the materials used manufacturing them. If it appears to us that duty has not been paid on everything correctly, and you cannot satisfactorily account for the difference, you must pay the difference between the amount that has been paid and the amount that should have been paid. ^[29]

If you wish to destroy any excisable alcohol products, you must first obtain permission from us to do so. This does not apply to the destruction of beer of up to 125 litres of alcohol per quarter, provided certain conditions are met. For more information, refer to Section 7.3.1 Applying for a remission of excise duty.

You must not move excisable alcohol products, without approval from us. This includes moving excisable alcohol products from premises covered by your licence to any other location or for export. ^[30]

For more information about obtaining permission to move excisable alcohol products, refer to Chapter 5 Movement permissions.

You are also responsible for ensuring that you comply with the Excise Act and all conditions of your licence. ^[31]

You must keep, retain and produce records in accordance with ' section 50 ' of the Excise Act.

If you are a manufacturer, you will also need to:

•

ensure excisable alcohol products are only delivered for home consumption with appropriate authority, such as in accordance with a periodic settlement permission or Delivery authority ^[32]

•

pay the correct amount of excise duty ^[33]

•

provide all reasonable facilities to enable us to exercise our powers under the Excise Act ^[34] , and

•

provide sufficient lighting, correct weights and scales, and all labour necessary for

–

weighing material received into your factory

–

weighing all excisable goods manufactured in your factory, and

–

taking stock of all material and excisable goods contained in your factory. ^[35]

If you have a storage licence, you will also need to:

•

ensure excisable alcohol products are only delivered into the Australian domestic market with appropriate authority, such as in accordance with a periodic settlement permission or Delivery authority, and

•

pay the correct amount of excise duty ^[36] if you are the owner or manufacturer.

For more information about duty liability and methods of payment, refer to Chapter 6 Payment of duty.

2.3.3 WHAT ELSE WE CAN DO

Access

We have the right to enter premises covered by your licence at any time and can examine and take account of all the goods at the premises. ^[37] Note: we will usually only seek to enter your premises during normal business hours.

Stop vehicles

We can stop any vehicle leaving premises covered by your licence and check that there is proper documentation for excisable alcohol products leaving the premises. We can question the driver about any goods in the vehicle. We can direct that the vehicle be unloaded and goods taken to particular parts of the premises for further examination. We must not detain a vehicle for longer than is necessary to do the checking. ^[38]

Search vehicles

We can stop and search any vehicle (not just vehicles leaving premises covered by a licence) without a warrant if we have reasonable grounds for believing that the vehicle contains excisable alcohol products and that the vehicle has been used, is being used or will be used in committing an offence under the Excise Act (and certain offences in the Crimes Act 1914 ^[39] and Criminal Code ^[40] relating to accessory after the fact, attempt to commit an offence, aid and abet someone to commit an offence and conspiracy to commit an offence). ^[41]

Examine goods

We can open packages and examine, weigh, mark and seal any excisable alcohol products that are subject to ' excise control ' and, if you are a manufacturer, lock up, seal, mark or fasten any plant in or on your factory. ^[42]

We can also:

•

supervise the manufacture of excisable alcohol products ^[43] , and

•

take, utilise and dispose of samples of materials, partly manufactured excisable alcohol products and excisable alcohol products subject to excise control, and alcohol products that we have reasonable grounds for suspecting are excisable alcohol products on which duty has not been paid. ^[44]

2.3.4 KEEPING RECORDS

The Excise Act provides that a licence holder shall ^[45] :

(a)

keep such records and furnish such ' returns' as directed

(b)

keep these records for the period directed, and

(c)

on demand, produce those records to us.

Any such direction will be in writing and included as a condition on your licence.

We can inspect and take copies of any records kept as directed.

If you cease to hold an excise licence you must still keep all records of your previously licensed activities. Records must be kept for the period of time as directed.

For more information about the type of records you may need to keep, see the chapter relevant to your industry.

2.3.5 LICENCE DURATION

A licence is ongoing until it is cancelled – either by the Collector ^[46] or at your request. ^[47]

2.3.6 TRANSFEFRING A LICENCE

Generally, you cannot transfer your licence to another individual or business entity. The proposed new licence holder must apply for a new licence. You must also request cancellation of your current licence if you are no longer carrying out an excise activity. It is important that you advise us of any change in advance of it taking effect.

The exception to the above rule arises when a licence holder dies. If this is the case, the licence is taken to be transferred to the person's legal personal representative. This allows for the finalisation of the affairs and, unless cancelled earlier, the licence is taken to be automatically cancelled 3 months after the licence holder dies. ^[48]

For more information about cancelling licences, refer to Chapter 4 Licensing: suspension and cancellation.

2.3.7 DISCLOSING LICENSING INFORMATION

As well as the protection provided by the Privacy Act 1988 , the tax laws have secrecy provisions about using and disclosing taxpayer information. ^[49] We can only look at, record, discuss or disclose information about you when it is a necessary part of our work, or where the law specifies that we may.

Subdivision 355-B of Schedule 1 to the Taxation Administration Act 1953 (TAA) allows us to record or disclose information about you in certain circumstances. For example, it specifically allows us to disclose information about you to the ABF.

In relation to licensing information, the TAA allows us to disclose information for the purpose of enabling an entity to understand or comply with their tax obligations. ^[50] This includes:

•

whether another person holds a current excise licence, and

•

any conditions that apply to their licence.

The ATO is lawfully required to publish and maintain a public register on the ATO website, disclosing the name of the licence holders, their Australian Business Number (ABN) and the name of the Act under which the licence was granted. ^[51] This will assist business to identify entities that are licensed to manufacture and store excisable goods and excise equivalent goods.

Information may be disclosed by taxation officers in the performance of their duties and would cover disclosing information:

•

to a person dealing or proposing to deal with another person in relation to goods subject to excise control, and

•

provided we are satisfied that disclosure is necessary for the purposes of ensuring the dealing or proposed dealing is in accordance with excise law. ^[52]

---

Example 2C

You need to find additional storage space for your finished alcohol products and, therefore, need to check that the entity who offers to store your products has a licence to store excisable alcohol products. Information on whether a business holds an excise licence could be located by you on the excise and excise-equivalent warehouse licences register .

If you require further information and we decide that the disclosure is necessary, we must provide the information in writing to the person who requires it. If the matter is urgent, we may advise by phone. However, we must later confirm the information by letter.

---

A disclosure may be initiated by us or by you when you request information.

Anyone who receives such information should use it only for the purpose for which it was given. Any other use may be unlawful.

Note: the TAA imposes certain obligations on you concerning the on-disclosure of information that affects another person. ^[53] The Privacy Act 1988 also imposes certain obligations on you concerning the privacy of information that you have received about an individual. Further information can be obtained from the Office of the Australian Information Commissioner .

Our decision in relation to the disclosure of protected information is not a reviewable decision. However, you have the right to make a complaint to the Commonwealth Ombudsman about a range of administrative actions we take or the Australian Information Commissioner if you think we have breached the Privacy Act 1988 in dealing with your personal information.

For information about your review rights, refer to Chapter 8 Reviews and objections.

When you provide details of the authorised person we should contact if we need to know more about your application, or the operations of your business, you are giving us authority to disclose information. This could be yourself, as the applicant, or another person you nominate.

2.4 PROCEDURES

2.4.1 REGISTERING FOR EXCISE

If you will be making payments of excise duty but do not hold (and are not applying for) an excise licence, periodic settlement permission or movement permission you need to register by completing an Excise registration .

While it is not compulsory to provide an ABN or tax file number (TFN) for registration, it will help us to process your application.

To register for excise, complete an Excise registration .

2.4.2 APPLYING FOR A LICENCE

If you would like to apply for a licence, you should:

•

contact us, and

•

lodge an application form together with all the required supporting documents.

You can contact us via:

•

ATO Online Services

•

phone 1300 137 290 , or

•

write to us at

Australian Taxation Office
PO Box 3514
ALBURY NSW 2640

Our staff will:

•

discuss your particular circumstances with you

•

give you advice about the appropriate licence or licences

•

explain how to apply

•

explain your ongoing obligations as a licence holder, and

•

provide you with a licence application form.

There is no charge for an excise licence.

Lodging an application

You need to complete the relevant form to apply for a manufacturer or storage ^[54] licence.

Before lodging your application form, make sure you have included the required supporting documents. Your application form contains information to help you work out which supporting documents you must provide. You may also need to complete other excise forms, depending upon your proposed activities.

Supporting documents include:

•

an accurate plan of the premises that clearly indicates the area for manufacture or storage

•

a Fit and proper person declaration

•

an application for permission to move underbond goods

•

if requested by us, by us, a Consent to a national criminal history check – excise.

For more information about movement permissions refer to Chapter 5 Movement permissions.

You should contact our Client Services staff on 1300 137 290 , for advice about the forms and supporting documents that you will need to lodge.

To lodge your completed application form and supporting documents, send them to Excise and EEG Client Services via:

•

ATO Online Services

•

phone 1300 137 290 , or

•

write to us at

Australian Taxation Office
PO Box 3514
ALBURY NSW 2640

You must not manufacture or store excisable goods before your licence has been granted. ^[55]

When you lodge your application, you can expect a decision within 28 days of us receiving all the necessary information.

Applying to vary a licence

Where you hold an existing manufacturer or storage licence, you can apply to vary your licence ^[56] to:

•

add a new premises to your existing manufacturer or storage licence

•

remove a premises from your licence that covers more than one premises

•

consolidate your existing licenses into one licence that covers multiple premises.

---

Example 2D

LoneWolf Brewery Pty Ltd, operating under one ABN, holds one manufacturer and 2 storage licences and wants to consolidate these into one licence. LoneWolf Brewery therefore apply to vary their existing manufacturer licence to cover the additional premises covered by the 2 storage licences.

The ATO approves the variation, with the existing manufacturer licence now also covering the premises previously covered by the storage licences and notifies in writing of the cancellation of the storage licenses, as they no longer cover a premises. ^[57] As part of the new entity level licence, LoneWolf Brewery are issued a schedule which specifies the premises covered, the type of excisable goods that can be manufactured and stored, activities authorised to be undertaken at the premises and any special conditions imposed on the licence.

---

2.4.3 CHANGING LICENCE DETAILS

We can amend your licence for changes that do not involve a change of entity. This includes a change of business name (that is, your trading name).

A change in composition of a partnership does not affect the continuity of that partnership. Any one or more of the partners may act on behalf of the partnership in notifying changes. ^[58]

You must advise us of any of these changes within 30 days. We will then provide you with an amended licence.

2.4.4 MORE INFORMATION

If you need more information on licensing matters, you can contact us via:

•

ATO Online Services

•

phone 1300 137 290 , or

•

write to us at

Australian Taxation Office
PO Box 3514
ALBURY NSW 2640

We will ordinarily respond to electronic requests within 28 business days and finalise private rulings within 28 days of receiving all necessary information. If we cannot respond within 28 days, we will contact you within 14 days to obtain more information or negotiate an extended response date.

2.5 PENALTIES THAT CAN APPLY IN RELATION TO LICENCES

The following are the penalties that may apply after conviction for an offence.

Manufacture

If you manufacture excisable alcohol products without a manufacturer licence, the penalty is 2 years in prison or the greater of 500 ' penalty units ' and 5 times the amount of duty that would have been payable if the goods had been entered for home consumption on the penalty day. ^[59]

If you manufacture excisable alcohol products contrary to the Excise Act or any conditions specified in your licence the penalty is a maximum of 2 years in prison or 500 penalty units. ^[60]

If you manufacture excisable alcohol products at premises that are not specified as manufacturing premises in your licence, the penalty is 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty that would have been payable if the goods had been entered for home consumption on the penalty day. ^[61]

Keep or store without permission

If you possess or have custody or control of excisable alcohol products without permission, the penalty is 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty that would have been payable if the goods had been entered for home consumption on the penalty day. ^[62]

False or misleading statements

If you make a false or misleading statement to us, the penalty is a maximum of 50 penalty units.

If you make a false or misleading statement, or an omission from a statement in respect of duty payable on particular goods, to us, a penalty not exceeding the sum of 50 penalty units and twice the amount of duty payable on those goods. ^[63]

Records

If you do not keep, retain and produce records in accordance with section 50 of the Excise Act, the penalty is a maximum of 30 penalty units.

Directions

If you do not comply with a direction in regard to what parts of the factory can be used for various matters, the penalty is a maximum of 10 penalty units. ^[64]

Facilities, etc.

If you do not provide all reasonable facilities for enabling us to exercise our powers under the Excise Act, the penalty is a maximum of 10 penalty units. ^[65]

If you do not provide sufficient lights, correct weights and scales, and all labour necessary for weighing material received into, and all excisable alcohol products manufactured in, your factory and for taking stock of all material and excisable alcohol products contained in your factory, the maximum penalty is 10 penalty units. ^[66]

Marks and seals

If we mark or seal excisable alcohol products or fasten, lock or seal any plant in your factory and you alter, break or erase the mark, seal, fastening or lock, the maximum penalty is 50 penalty units. ^[67]

2.6 TERMS USED

Excisable alcohol products

Excisable goods are goods on which excise duty is imposed. Excise duty is imposed on goods that are manufactured or produced in Australia and listed in the Schedule to the Excise Tariff Act or an Excise Tariff alteration.

As this Guide deals with alcohol products, we have used the term excisable alcohol products.

Excisable alcohol products include:

•

beer

•

spirits

•

premixed drinks known as ready-to-drink (RTD) beverages

•

brewed beverages that are not beer, and

•

high strength spirit for non-beverage use, including denatured spirit.

Excise control

Goods are subject to excise control from the point of manufacture until they have been delivered into the Australian domestic market or for export.

Goods subject to excise control cannot be moved, altered or interfered with except as authorised under the Excise Act.

Excise return

An excise return is the document that you use to advise us of:

•

the volume of excisable alcohol products that you have delivered into the Australian domestic market during the period designated on your periodic settlement permission, or

•

the volume of excisable alcohol products that you wish to deliver into the Australian domestic market following approval. ^[68]

For information about when duty is payable under periodic settlement refer to Chapter 6 Payment of duty.

Penalty units

The value of a penalty unit is contained in section 4AA of the Crimes Act 1914 , and is indexed regularly. The dollar amount of a penalty unit is available at Penalties .

Section 50 direction

This is a written instruction issued under section 50 of the Excise Act to a licensed manufacturer, or proprietor of premises covered by a storge licence, to keep specified records, furnish specified returns, retain records for a specified period and produce those records on demand by us. This written direction is included as a condition of your licence.

Underbond

This is an expression not found in excise legislation but it is widely used to describe goods that are subject to excise control. Excisable goods that are subject to the Commissioner's control are commonly referred to as 'underbond goods' or as being 'underbond'. This includes goods that have not yet been delivered into the Australian domestic market and goods moving between premises under a movement permission.

2.7 LEGISLATION (quick reference guide)

In this Chapter, we have referred to the following legislation:

•

Excise Act 1901

–

section 4 – definitions

–

section 6A – how this Act applies to partnerships

–

section 24 – excisable goods and goods liable to duties of Customs may be used in manufacturing excisable goods

–

section 25 – only licensed manufacturers to manufacture excisable goods

–

section 26 – licensed manufacturers to manufacture in accordance with Act and licence

–

section 27 – licensed manufacturers to manufacture only at licensed premises

–

section 39 – applications for licences

–

section 39E – duration of licences

–

section 39FA – application for variation

–

section 39FB – variation of licence

–

section 39O – death of licence holder

–

section 46 – supervision by officers

–

section 49 – facilities to officers

–

section 50 – record keeping

–

section 51 – collector may give directions

–

section 52 – weights and scales

–

section 53 – responsibility of manufacturers

–

section 54 – liability to pay duty

–

section 58 – entry for home consumption etc.

–

section 60 – persons to keep excisable goods safely etc.

–

section 61A – permission to remove goods that are subject to CEO's control

–

section 61C – permission to deliver certain goods for home consumption without entry

–

section 62 – deficiency in duty

–

section 77FC – repackaged beer

–

section 86 – officers to have access to factories and approved places

–

section 87 – power to stop conveyances about to leave an excise place

–

section 87AA – searches of conveyances without warrant

–

section 91 – examine all goods

–

section 92 – seals etc. not to be broken

–

section 106 – samples

–

section 117 – unlawful possession of excisable goods

–

section 120 – offences

•

Excise Tariff Act 1921

–

The Schedule

•

Customs Act 1901

–

section 105B – extinguishment of duty on excise-equivalent goods

•

Crimes Act 1914

–

section 4AA – penalty units

–

section 6 – accessory after the fact

•

Criminal Code Act 1995 – The Schedule

–

section 11.1 – attempt

–

section 11.2 – complicity and common purpose

–

section 11.5 – conspiracy

•

Taxation Administration Act 1953 – Schedule 1

–

Division 355 – confidentiality of taxpayer information

–

Subdivision 355-B – disclosure of protected information by taxation officers

–

Subdivision 355-C – on-disclosure of protected information by other people

---

Amendment history

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

References